Appendix No. 48

to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n

The international standard of the accompanying services 4410 (reviewed) "Tasks on compilation"

The International Standard of the Accompanying Services (ISAS) 4410 (reviewed) of "Task on compilation" should be considered together with the Preface to the Collection of International standards of quality control, audit and survey checks, the other tasks providing confidence, and tasks on rendering the accompanying services.

Introduction

Scope of this standard

1. This The International Standard of the Accompanying Services (ISAS) establishes obligations of the practicing expert involved to rendering to management assistance in preparation and representation of financial information of last periods without ensuring confidence in the relation of this information and also for reflection in the reporting of data on the performed task according to this MSSU (see the Items A1 - A 2).

2. This MSSU is applicable to tasks on compilation of financial information of last periods. This standard can be applied, taking into account the corresponding adaptation, to tasks on compilation of the financial information which is not relating to financial information of last periods, and also to tasks on compilation of non-financial information. Further in this MSSU "financial information" is called "financial information of last periods" (see the Items A3 - A 4).

3. If the practicing specialist receives request for rendering to management assistance in preparation and representation of financial information, then proper consideration of question of can be required whether this task be performed according to this MSSU owes. To number of the factors specifying feasibility of application of this standard including preparation of the reporting based on this MSSU, questions of whether it is valid belong:

- disclosure of financial information is provided by provisions of the applicable laws or regulations and whether it shall be placed in open access;

- outer sides, except expected users of financial information, can associate the practicing specialist with such financial reporting, and there is risk that extent of participation of such specialist in preparation of this information can be incorrectly apprehended, for example:

- - if financial information is held for use the parties, except the management or persons who are responsible for corporate management or can be provided for benefit of the parties or is received by the parties, not being its expected users;

- - if the name of the practicing specialist is associated with financial information (see Item A 5).

Interrelation with MCKK 1 <1>

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<1> The International Standard of Quality Control (ISQC) 1 "Quality control in the auditing organizations booking audit and survey verifications of the financial reporting, and also performing the other tasks providing confidence, and tasks on rendering the accompanying services".

4. Development and deployment of quality control systems, policy and procedures belongs to duties of auditing organization. Action of MCKK 1 <2> extends to the organizations of professional accountants in relation to tasks on compilation. This provision of MSSU, concerning quality control at the level of separate tasks on compilation, are developed proceeding from the fact that the auditing organization shall observe requirements of MCKK 1 or other requirements which are at least strict (see the Items A6 - A 11).

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<2> MSSK 1, item 4.

Task on compilation

5. The management can send to the practicing professional accountant inquiry for rendering assistance in preparation and representation of financial information of the organization. Task performance value on compilation according to this MSSU for users of financial information is caused by use of professional knowledge, experience and skills of the practicing specialist in the field of financial accounting and accounts presentation taking into account observance of professional standards, including the conforming ethical requirements, and also accurate informing the corresponding persons on nature and amount of participation of the practicing specialist in preparation of the compiled financial information (see the Items A12 - A 15).

6. As the task on compilation is not the task providing confidence, such task does not demand from the practicing specialist of confirmation of accuracy or completeness of information provided by management for the purposes of compilation, or other collection of proofs for expression of auditor opinion or forming of conclusion by results of survey check concerning preparation of financial information.

7. The management continues to bear responsibility for financial information and basic data on the basis of which it is prepared and provided. Such responsibility assumes application by management of the judgment necessary for preparation and representation of financial information, including selection and application of the corresponding accounting policies, and also (as required) calculation of reasonable estimative values (see the Items A12 - A 13).

8. This MSSU does not determine obligations of management or persons who are responsible for corporate management and has no priority over the laws and regulations regulating their obligations. The task performed according to this standard is performed in case of assumption that management or if it is pertinent, persons who are responsible for corporate management approved certain obligations which are fundamental for task performance on compilation (see the Items A12 - A 13).

9. Financial information concerning which the task on compilation is performed can be required for various purposes, including:

(a) for fulfillment of requirements on regular submission of the obligatory financial reporting, established by the law or the regulation;

(b) for the purposes which are not connected with submission of the obligatory financial reporting based on relevant provisions of the law or the regulation, for example:

- for the management or persons who are responsible for corporate management - the reporting prepared on the basis of information answering to their specific purposes (for example, by preparation of the financial reporting for office use);

- concerning the periodic financial reporting constituted for external users on the basis of the agreement or other form of the arrangement (for example, the financial information transferred to the financing body in confirmation of justification of provision or continuation of provision of grants or grants);

- for the purposes of the transaction, for example, as reasons for the transaction attracting changes in structure of property or structure of financing (for example, in case of merge or acquisition).

10. For preparation and representation of financial information various concepts of preparation of the financial reporting can be used: from the simple principles of preparation of the financial reporting of the specific organization to the commonly accepted accounting standards. The choice by management of this or that concept of preparation of the financial reporting for creation and representation of financial information is caused by nature of organization activity and intended use of such information (see the Items A16 - A 18).

Scope of this MSSU

11. The purposes which the practicing specialist intends to reach by observance of the requirements containing in it are listed in this standard. The specified purposes explain context in which such requirements were determined, and are designed to help practicing to understand to the specialist tasks which shall be solved in case of task performance on compilation.

12. The requirements described by means of the verbs "shall (shall, shall)" and "shall (shall, shall)" which are designed to provide achievement by the practicing specialist of effective objectives are provided in this MSSU.

13. Besides, this MSSU contains materials for studying, determinations, the application guide and other explanatory materials which provide the due level of understanding of its essence.

14. The application guide and other explanatory materials explain requirements in more detail and contain instructions for their observance. Though such instructions in itself have no binding character, they play important role in proper fulfillment of requirements. The application guide and other explanatory materials can also promote receipt of initial information on the questions considered in this MSSU which will provide the due level of observance of requirements.

The effective date

15. This MSSU becomes effective concerning reports on task performance on compilation of July 1, 2013 or after this date.

Purposes

16. In case of task performance on compilation according to this MSSU the purposes of the practicing specialist consist in the following:

(a) apply working experience in the field of financial accounting and the financial reporting to rendering to management assistance in preparation and representation of financial information according to the applicable concept of preparation of the financial reporting based on information provided by management;

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